OPTION

Option

In finance, an option is a contract which gives the buyer the right, but not the obligation, to buy or sell an underlying asset or instrument at a specified strike price on or before a specified date. The seller incurs a corresponding obligation to fulfill the transaction – that is to sell or buy – if the owner elects to "exercise" the option prior to expiration. The buyer pays a premium to the seller for this right. An option which conveys to the owner the right to buy something at a specific price is referred to as a call; an option which conveys the right of the owner to sell something at a ...

The above text is a snippet from Wikipedia: Option (finance)
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option

Noun

  1. One of the choices which can be made.
  2. The freedom or right to choose.
  3. A contract giving the holder the right to buy or sell an asset at a set strike price; can apply to financial market transactions, or to ordinary transactions for tangible assets such as a residence or automobile.
  4. A button on a screen used to select an action (often "menu option")

Verb

  1. To purchase an option on something.
    The new novel was optioned by the film studio, but they'll probably never decide to make a movie from it.


The above text is a snippet from Wiktionary: option
and as such is available under the Creative Commons Attribution/Share-Alike License.

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